The sun is shining, the gallo pinto is fresh, and another tax season in Costa Rica is upon us. For the many expatriates who hold assets like homes, cars, or bank accounts within a Costa Rican corporation, understanding your annual obligations is key to maintaining peace of mind and staying on the right side of the law.
If your corporation doesn't conduct any income-generating business—what the government calls an "inactive company" (sociedad inactiva)—you still have important annual filings to complete. The rules have evolved over the past few years, so let's clear up the confusion and provide a straightforward guide for 2025.
What was once a confusing mix of forms like the D-135 and the D-101 simplificado has now been standardized. For several years, inactive companies have had two primary, mandatory filings.
The Two Pillars of Inactive Company Compliance:
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The Annual Corporate Tax (Impuesto a las Personas Jurídicas): This is a flat-rate tax that must be paid by January 31st each year. For 2025, the amount for inactive corporations is ₡69,330. You can generate the payment order (entero) on the Ministry of Finance's (Hacienda) online portal and pay it through your local bank's website. Failure to pay this tax for several consecutive periods can lead to the forced dissolution of your company.
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The Informative Declaration of Inactive Companies (Form D-195): This is not a tax payment but a report declaring your company's assets, liabilities, and capital. The deadline for filing Form D-195 is April 30th annually.
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The Registry of Transparency and Final Beneficiaries (RTBF): Also known as the "beneficial owner" declaration, this filing identifies the ultimate individuals who own or control the corporation. The deadline for the annual ordinary declaration is also April 30th.
Demystifying Form D-195: A Step-by-Step Approach
The biggest source of anxiety for many filers is the D-195, specifically how to value the assets held by the corporation. While the form asks for a summary of assets, liabilities, and capital, the question remains: which value do you use?
Let's break it down by asset type with a practical approach for 2025.
The Filing Platform: ATV
All your tax declarations are filed through the government's online portal called Administración Tributaria Virtual (ATV). While it is entirely in Spanish, modern web browsers offer excellent translation features. A crucial tip: when first creating your account or logging in, it's often best to keep the page in Spanish to ensure your identification numbers (like your DIMEX or passport number) are processed correctly.
Valuing Your Assets: A Practical Guide
The tax authorities require a good-faith declaration of your company's financial position as of the end of the fiscal year (December 31, 2024). Here is a recommended approach for valuing your most common assets:
- Bank Accounts & Financial Instruments: This is the most straightforward. Use the account balance as of December 31, 2024. If your account is in U.S. dollars, you must convert it to Costa Rican colones using the official sell rate (venta) published by the Central Bank of Costa Rica (BCCR) for that date.
- Vehicles: The safest and most easily verifiable value is the "valor hacienda" (tax value) listed in the National Registry (Registro Nacional).
- How to find it: Go to the Registro Nacional website, select "Consultas Gratuitas," then "Bienes Muebles," and enter your vehicle's license plate number (placa). The report generated will show the "valor hacienda," which is the number you should use.
- Properties (Real Estate): This is the most common point of confusion. A property in Costa Rica can have multiple values (purchase price, municipal value, deed value, market value). For the D-195, a conservative and defensible approach is to use the highest of either the value registered in the National Registry or the value registered with the local municipality for property tax purposes.
- If there's a significant discrepancy between these values, or if the property has undergone major improvements not reflected in these records, consulting with a certified public accountant is highly recommended to determine the appropriate value based on financial reporting standards.
- Other Assets: If your inactive company holds other significant assets, such as valuable artwork or other unregistered items, it is strongly advised to seek professional accounting advice to ensure accurate reporting.
Filing the Registry of Transparency and Final Beneficiaries (RTBF)
This declaration is filed on a separate platform: the Central Bank of Costa Rica's Central Directo system. The good news is that if you filed last year and there have been no changes to the ownership structure of your company, the process is incredibly simple.
Steps for the Annual RTBF Filing:
- Log in to the Central Directo system using your digital signature (firma digital).
- Select the option to file the annual declaration.
- The system will offer to "preload" the information from your last declaration.
- If all information is still correct, you simply review, sign, and submit.
If there have been changes in ownership, you will need to edit the pre-loaded information accordingly.
Key Takeaways for 2025:
- Mark Your Calendar: January 31st for Corporate Tax payment. April 30th for both the D-195 and RTBF declarations.
- Use the Right Forms: D-195 is the informational return for inactive companies.
- Value Assets Conservatively: Use the National Registry's "valor hacienda" for vehicles and the higher of the registered or municipal value for properties.
- Use the Correct Exchange Rate: For foreign currency balances, use the BCCR's sell rate for December 31, 2024.
- Simplify Your RTBF: Use the preload feature if there are no ownership changes.
- When in Doubt, Ask: The rules are much clearer now than in the past, but every situation is unique. Consulting with a certified public accountant (CPA) can save you headaches and potential penalties down the road.
By staying informed and tackling these requirements one step at a time, you can ensure your inactive corporation remains in good standing, allowing you to fully enjoy the pura vida lifestyle without tax worries.
This article is an update to a topic first explored by Garland M. Baker B. in A.M. Costa Rica on April 5, 2021. The information provided is for informational purposes and does not constitute legal or financial advice. Consult a qualified Costa Rican professional for your specific situation. ©2004-2025 Costa Rica Expertise. Free use permitted with attribution (CC BY 4.0). 1210405 ZZ!
